SECTION I
INTRODUCTION
The purpose of the Purchase College Business Procedures Manual is to provide persons who administer State Purpose and/or Income Fund Reimbursable accounts with a reference source for processes and procedures associated with those funds. This manual is to be used as a guide to determine the established policies and procedures associated with the College's fiscal transactions and should address the majority of questions raised by persons administering the funds.
However, as with any large, complex organization, there are times when specific transactions require extra ordinary processing. In those cases or when the standard processes do not appear to address a particular situation, the Accounting or Purchasing Offices should be contacted to determine the most appropriate way to meet those specific needs.
The looseleaf format to this manual is designed for the convenience of the user, as well as ease in modifying or adding information. The Table of Contents includes a fair amount of detail to assist readers in quickly locating the specific information needed. Readers' comments on the usefulness of this manual, as well as suggestions for future changes or additions, are welcome.
- Definitions of Commonly Used Terms
Following are definitions of key terms used throughout this manual
- Account Manager
At Purchase College, typically, our account managers are Deans/Heads/Directors,i.e. employees who have administrative responsibility for a division/department of the College. These managers have decision making authority necessary to operate their area efficiently and effectively and are accountable for operational/financial performance and results. - Administrative Overhead
An assessment against expenditures in IFR accounts to recoup the indirect administrative and other indirect cost associated with operating an IFR program. The assessment is reflected in the individual IFR accounts as a reduction to the uncommitted cash balance. - Allocation Transfer
Movement of allocation from one account or object to another account or object. Transfer of allocation from an account decreases the account's uncommitted balance. Transfer of allocation into an account increases the account's uncommitted balance. - Authorized Allocation
The level of funding available to the account for its operations. Allocations are assigned by object. - Authorized Signatory
Person(s) authorized to approve transactions associated with a particular account. There can be up to three authorized signatories per account. - Closeout Period
Allocations are assigned to accounts and intended for use during the fiscal year (July 1 through June 30). Often transactions started during the fiscal year are not completed by June 30. For example, an item ordered in April may not be delivered by the vendor until August. The College's closeout period begins July 1 and continues into September. - Cash Disbursement
Issuance of a check to a vendor as payment for goods or services. With the exception of items costing less than $250, which are paid from College petty cash funds, and travel checks, all cash disbursements are issued by the State Comptroller's Office. - Committed Funds
The total of all outstanding encumbrances and expenditures in an account. - Encumbrance
A commitment of a portion of an account's allocation to purchase a particular good or service (e.g. purchase orders). - Equipment Funds
Funds assigned to an account to purchase items defined as equipment. Usually such allocations are based on the expected cost of the item(s) to be purchased. - Expenditure
A transaction that indicates the approval to issue a check. The transaction could be liquidating an encumbrance or be a direct payment out of uncommitted funds. - Expenditure Transfer
Movement of expenses incurred in one account to another account. Transfer of expenditures from an account increases the account's uncommitted balance. Transfer of expenditures into an account decreases the account's uncommitted balance. - Fiscal Year
The time period used to monitor financial activity. The College's fiscal year is July 1 through June 30. - Fringe Benefits
An assessment against temporary service and personal service charges in IFR accounts to recoup the costs of fringe benefits. The assessment is made against all temporary service charges, except students and honoraria, regardless of whether the individual receives the College's entire fringe benefit package. - Income Fund Reimbursable (IFR)
A self supporting account that operates on revenue generated from its operations. These accounts are considered a special type of State funds. - Lodging Request (LR)
A form used to pay the room costs incurred by travelers. Use of the lodging request form results in direct payment to the vendor by the State. - Maintenance Operations Overhead (M&O)
An assessment against expenditures in IFR accounts to recoup the indirect costs associated with the facilities used by an IFR program. The assessment is reflected in the individual IFR accounts as a reduction to the uncommitted cash balance. - Memorandum of Understanding (MOU)
An agreement between two State agencies specifying work to be done by one agency and the method of payment and amount to be paid by the other agency for the services rendered. - Object Codes
Numeric codes representing distinct categories of funds within an account; e.g., Personal Service, Temporary Service, Supplies and Equipment. Also see Sub Object Codes. - Pending Items
Transactions which have been initiated, but have not yet completed the entire transaction process. - Personal Service Funds
Assigned to accounts to support persons paid with State Purpose and Income Fund Reimbursable appropriated funds. Positions are normally controlled via line items through the annual budget process. - Project Director
First signatory listed on the authorized signatory list for a particular account. Used interchange ability with Account Manager when associated with Income Fund Reimbursable accounts. - Purchase Order (P.O.)
A document specifying the description, quantity, price, and related information for goods and services ordered from a vendor. An issued purchase order is a contract between the College and the vendor, not to be altered without the approval of the Purchasing Office. - Purchase Requisition
A request to order goods or services by a department. Most requisitions are sent to the Purchasing Office for action. Requisitions for direct vendor payments, such as subscriptions, advertising, utilities and freight charges, are sent directly to the Accounts Payable Office. - Receiving Report (AP102)
A document to be prepared by department staff when goods or services are received. The report provides a description of the goods, quantity, and date received, as well as other relevant data. A properly completed receiving report is required for the Accounts Payable Office to pay vendors. - Recharge Funds
Funds assigned to an account to record the expenses incurred for College provided goods and services. The recharge areas include telephone, mail, printing, and the Center for Instructional Resources. - Revenue Contract
A contract between the College and another entity wherein the College is to provide a good or service. The revenue contract specifies the good or service, applicable time period(s) and the amount to be paid to the College. - State Purpose Funds
State appropriated funds provided to the campus to operate College programs. - Sub Object Codes
A more detailed structuring of expenses within the object codes. For example, the object code supplies can be further detailed to classroom, office, or cleaning. - SUNY
State University of New York. - Supply and Expense Funds (S&E)
Assigned to accounts to fund departmental operating expenses for such items as supplies, contractual services, or travel. - Temporary Service Funds
Assigned to accounts to fund expenses for hourly or non-permanent employees and honoraria. - Transportation Request (TR)
A form used to pay common carriers for airplane, train or bus charges. Use of a transportation request results in direct payment to the vendor by the State. - Uncommitted Balance
The allocation remaining and available for use in the account after deducting all outstanding encumbrances and expenditures from the authorized allocation. - Vendor's Invoice
A document issued by vendors specifying such items as the description and quantity of goods and services delivered, price, freight costs, cash discount terms, and the billing date. This essential document is required for payment to be made. Invoices should be sent directly to the Accounts Payable Office by the vendor. - Vendor Statement
A statement prepared periodically by the vendor indicating the beginning balance, billings, collections, and ending balance. These statements are the vendor's representations of activity for the period and cannot be substituted for vendor invoices as a basis for payment; i.e. the College pays its bills in response to vendor invoices only, not from vendor statements. - Voucher
A control document required by the State Comptroller's Office to issue a disbursement.
- Account Manager
- Frequently Used Acronyms
- Organizations/Agencies - Off Campus
- DOB - New York State Division of Budget
- NYS - New York State
- OGS - Office of General Services (of New York State)
- OSC - Office of the State Comptroller
- RF - Research Foundation
- SUNY - State University of New York
- Organizations/Groups & Departments - On Campus
- ASC - Auxiliary Services Corporation
- CE - Continuing Education
- CIR - Center for Instructional Resources
- CSEA - Civil Service Employee Association
- HR - Human Resources Office - Personnel,Payroll & Affirmative Action
- M&O - Maintenance and Operations
- MC - Management Confidential
- PAC - Performing Arts Center
- PCA - Purchase College Association
- PEF - Public Employee Federation
- UUP - United University Professions
- Budget/Finance and Human Resources
- AC22 - Expenditure Transfer Form
- AER - Academic Equipment Replacement
- DIFR - Dormitory Income Fund Reimbursable
- EOP - Educational Opportunity Program
- FTE - Full-time Equivalent
- GRI - Graduate Research Initiative
- HRMS - Human Resources Management System
- IFR - Income Fund Reimbursable
- MOU - Memorandum of Understanding
- NTP - Non-Teaching Professional
- OTPS - Other Than Personal Service
- PAF - Personnel Action Form
- PCS - Property Control System
- PSR - Personal Service Regular
- S&E -Supplies and Expenses
- SCAP - Student Computing Acquisition Program
- SEOG - Supplemental Educational Opportunity Grant
- SUSTA - State University Supplemental Tuition Assistance
- TAP - Tuition Assistance Program TS Temporary Service Funds
- Purchasing & Accounts Payable
- AECC American Express Corporate Card
- C Contracts
- ENC Encumbrance
- HRF Honorarium Request Form
- LR Lodging Request
- MWBE Minority or Women Owned Business Enterprise
- PC Petty Cash
- PO Purchase Order
- RA Remittance Advice
- REQ Purchase Requisition
- TR Transportation Request
- V Voucher
- Organizations/Agencies - Off Campus
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The College enjoys funding from multiple sources. Each funding source has its own set of accounting and fiscal controls. Following is a brief description of the primary aspects of each funding source. The fiscal year for each funding source is the same, July 1 through June 30.
State Purpose Funds:
These funds are appropriated annually by the State Legislature through the State budgetary process. All activity is monitored by the State Comptroller's Office.Income Fund Reimbursable:
This mechanism allows departments to operate certain funds that collect revenue in support of specific activities. Examples include photocopy services, research grant cost recovery, and conferences. Like State Purpose funds, IFR expenditure budget authority is appropriated annually by the State Legislature and all payments are approved by the State Comptroller's Office.Research Foundation:
The SUNY Research Foundation serves as the conduit for all grants and contracts awarded to SUNY institutions. The Research Foundation provides basic administrative support to the campuses. The College is responsible for ensuring that expenditures are made in accordance with Research Foundation, sponsor, and campus guidelines and that sponsor billings are timely and accurate.Purchase College Association (PCA):
PCA is a not-for-profit corporation operated to provide auxiliary services to the College pursuant to a contract with the College and SUNY Board of Trustees. The PCA also provides bookkeeping services for specific operations through agency accounts, as allowed by SUNY policies. Agency accounts are established and monitored based on College Controller guidelines and approval.Purchase College Foundation:
Is a not-for-profit corporation created and operated to receive and administer gifts and donations for the campus. Monies are made available to departments in accordance with gift or donation specifications.